Nearly 100,000 investors summoned in the case of former FLC Chairman Trinh Van Quyet

The first-instance trial of Mr. Trinh Van Quyet and 49 others opened at the Hanoi People's Court, expected to last several days.

In addition to the 50 defendants, the Trial Council said it would summon 30,403 investors who bought ROS shares in the first sale. In addition, more than 63,000 investors holding these shares will also be summoned as people with related rights and obligations.

"Other participants in the proceedings may be summoned by the court when deemed necessary," the court stated.

Nearly 100 lawyers registered to defend the defendants, including 5 of Mr. Trinh Van Quyet.

In the indictment issued in April, the Supreme People's Procuracy prosecuted former FLC Chairman Trinh Van Quyet for the crime ofStock market manipulationandFraudulent appropriation of property.

Seven other people with the same crime include: Trinh Thi Minh Hue, an officer of the Accounting Department of FLC Group (Mr. Quyet's sister); Trinh Thi Thuy Nga, Deputy General Director of BOS Securities Company (Mr. Quyet's sister); Huong Tran Kieu Dung, Permanent Vice Chairman of the Board of Directors of FLC Group; Trinh Van Dai, Deputy General Director of FLC Faros Construction Joint Stock Company (Quyet's cousin); Nguyen Van Manh, Head of the Landscape Materials Group, Purchasing Department of FLC Land LLC (Mr. Quyet's brother-in-law, Trinh Thuy Nga's husband); Trinh Tuan, former Director of FLC Land Company (Mr. Quyet's nephew); Nguyen Thi Hong Dung, a freelancer (Nguyen Quang Trung's wife, a relative of Mr. Quyet).

In the same case, the Supreme People's Procuracy prosecuted Mr. Tran Dac Sinh, former Chairman of the Board of Directors of the Ho Chi Minh City Stock Exchange (HOSE); Le Hai Tra, former member of the Board of Directors, permanent Deputy General Director, independent member of the Listing Council of the Ho Chi Minh City Stock Exchange; Tram Tuan Vu, former Deputy General Director, Deputy Chairman of the Listing Council of the Ho Chi Minh City Stock Exchange; Le Thi Tuyet Hang, Director of the Listing Management and Appraisal Department, member of the Listing Council of the Ho Chi Minh City Stock Exchange, for the crime ofAbuse of position and power while performing official duties.

Mr. Le Cong Dien, former head of the Public Company Supervision Department under the State Securities Commission; Duong Van Thanh, former General Director of the Vietnam Securities Depository; Pham Trung Minh, former Head of the Securities Registration Department under the Vietnam Securities Depository, were prosecuted for the crime ofDisclosing false information or concealing information in securities activities.

Thirteen other people, including many relatives of Mr. Quyet, were prosecuted by the Supreme People's Procuracy.Stock market manipulation; The remaining 22 people were prosecuted for the crimeFraudulent appropriation of property.

Seizing 3,620 billion VND from 30,400 stock investors

According to the indictment, Mr. Quyet established and became Chairman of the Board of Directors of FLC Group in 2009, doing business in real estate, securities, and tourism services. After 11 years, the FLC ecosystem has 15 subsidiaries, two affiliated companies, and 5 listed stocks on the stock exchange.

To appropriate investors' money, Mr. Quyet directed Doan Van Phuong (former General Director of FLC Group, Chairman of the Board of Directors of Faros Construction Joint Stock Company, currently on the run) and Trinh Thi Minh Hue to increase the capital contribution of Faros Company (stock code ROS) from 1.5 billion VND to 4,300 billion VND, listed on the stock exchange.

Mr. Phuong and Ms. Hue asked some people to act as shareholders to receive the transfer of Faros shares. The company's leaders recorded this false information in the audited financial report and prospectus to complete the dossier for listing ROS shares.

The Supreme People's Procuracy said that officials of the State Securities Commission, the Securities Depository Center and the HOSE used the above information to approve the listing of 430 million ROS shares.

Mr. Tran Dac Sinh, Le Hai Tra, Tram Tuan Vu, and Le Thi Tuyet Hang were accused of knowing that there was not enough basis to determine the actual capital contribution of Faros, because Mr. Sinh had a relationship with Mr. Quyet, so they "accepted to quickly complete the listing documents".

Mr. Le Cong Dien, Duong Van Thanh, and Pham Trung Minh were also accused of knowing that there was not enough basis to determine that Faros' capital was 4,300 billion VND but still agreed to register ROS shares.

The indictment stated that the defendants' actions caused stock investors to mistakenly believe that ROS shares had real value. From there, Mr. Quyet sold 391 million shares to more than 30,400 investors, appropriating 3,620 billion VND. With this action, Mr. Quyet was prosecuted for the crime ofFraudulent appropriation of property.

Manipulating 5 stock codes to gain more than 700 billion VND

With the crimeStock market manipulationAccording to the Supreme People's Procuracy, Mr. Quyet directed his sister Hue to borrow documents from 45 other people to register 20 businesses and open 500 securities accounts, in order to profit from listed stocks in the FLC ecosystem. Mr. Quyet alone registered 23 accounts.

Five stocks AMD, HAI, GAB, FLC, ART were continuously bought and sold by Mr. Quyet's group in large volumes, dominating the market at the opening and closing of trading sessions. The group placed buy and sell orders and then canceled them to create fake supply and demand. This action helped Mr. Quyet earn a profit of 723 billion VND.

Specifically, in the two months of mid-2017, AMD shares helped Mr. Quyet illegally profit 39 billion VND. In the last 8 months of 2017 and early 2018, he earned 3.4 billion VND from HAI shares. In nearly a year from late 2019 to early 2020, he earned 238 billion VND from GAB code. From September 2020 to January 2022, he earned 397 billion VND from FLC code. In the first half of 2021, he continued to earn 44.5 billion VND from ART code.

The manipulation of AMD shares took place before the 2015 Penal Code took effect, so Mr. Quyet must bear criminal responsibility for the remaining 4 codes, totaling VND684 billion. Mr. Quyet and Ms. Hue must return the profits from AMD code.

The actions of Mr. Quyet's group were determined to be "illegally profiting from an exceptionally large amount of money", very serious, violating the State's economic management order in the field of securities and the stock market, the authorities accused.

Mr. Quyet was identified as the mastermind, decision maker, and director of the opening, management, and use of securities accounts; and the decision maker and director of the provision of fictitious money to accounts for Ms. Hue to manage and use, to manipulate 5 securities codes.

Ms. Hue "actively assisted" Mr. Quyet in committing the crime. She directly received instructions from her brother to assign others to inflate the capital contribution of Faros Company and list this stock on the stock exchange. She was also the one who bought and sold stocks or assigned others to open accounts and sign money transfer procedures to manipulate the stock market.

Mr. Quyet's other biological sister, Ms. Nga, was identified as directing all the illegal money transfers to accounts managed by Hue to manipulate the stock market.